CANADA-CHINA TRADE RESET
SIX MONTHS LATER: WHAT HAS REALLY CHANGED?
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Following escalating trade tensions since 2024, Prime Minister Carney’s January 2026 visit to China produced a notable attempted “reset” in Canada-China trade relations. The tariff measures agreed to as part of that reset took effect on March 1, 2026.
On June 24, 2024, the Canadian government announced the launch of a 30-day consultation period starting July 2, 2024, to explore potential policy responses aimed at protecting Canada’s auto workers and its growing electric vehicle (“EV”) industry against unfair trade practices from China.
Background
Canada’s automotive sector currently produces over 1.5 million vehicles annually, equivalent to one vehicle every 21 seconds. This sector supports nearly 550,000 indirect jobs, contributed $18 billion to Canada’s GDP in 2023, and ranks among the nation’s largest industries.
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